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Mortgage Broking

What does a mortgage broker do? A plain English explanation.

A mortgage broker compares home loans from dozens of lenders on your behalf and manages the application from start to settlement. Here is exactly what that means.

By Jason Given · April 2026 · 5 min read

The one-line answer

A mortgage broker is an intermediary who compares home loans from multiple lenders on your behalf, recommends the most suitable option for your situation, and manages the application process from start to settlement — at no cost to you.

That is the simple version. The detail matters because what a good broker actually does goes significantly beyond just picking a lender.

What Lendology does for every client

  • Assesses your complete financial position — income, expenses, debts, assets and goals
  • Calculates your borrowing capacity across multiple lenders, not just one
  • Identifies which lenders are most likely to approve your application and on what terms
  • Compares products across 60+ lenders — rates, fees, features and loan structure
  • Presents your options in plain English with an honest recommendation
  • Prepares and submits your application with all required documentation
  • Manages all communication with the lender throughout assessment
  • Coordinates valuations, loan documents and settlement
  • Stays in touch after settlement for rate reviews and future borrowing needs

How a broker is different from going directly to a bank

When you go directly to a bank, you see one lender's products assessed against one lender's criteria. The bank's job is to sell you their product. A mortgage broker's job — legally, under the Best Interests Duty — is to act in your interest, not the lender's.

This distinction matters practically. A broker knows which lenders assess self-employed income most generously, which ones accept lower deposits without LMI for certain professions, which ones have the fastest turnaround times for pre-approval, and which ones will approve a loan the majors have declined. That knowledge, applied to your specific situation, is where the value comes from.

Under Australian credit law, mortgage brokers have a Best Interests Duty — a legal obligation to recommend what is in your interest, not what generates the highest commission. This is a higher standard than banks are required to meet when selling their own products.

Who pays the mortgage broker?

In almost all cases, the lender pays the broker a commission once your loan settles. You pay nothing directly. The commission is broadly similar across lenders — which means a broker has no financial incentive to recommend one lender over another based on commission alone.

For very small loans or unusually complex situations, some brokers charge a fee. This must be disclosed upfront before any work begins. At Lendology, our service is always free to the borrower regardless of loan size or complexity.

What a broker cannot do

A mortgage broker arranges credit — they are not a financial planner, accountant or solicitor. We do not advise on whether property is a good investment, provide tax advice, or prepare legal documents. We work alongside your other advisers and refer to them when their expertise is needed.

Frequently asked questions

Is using a mortgage broker better than going directly to a bank?

In most cases yes. A broker compares multiple lenders simultaneously, knows which lenders suit your profile, and is legally required to act in your best interest. Banks can only offer their own products and are not required to recommend the best option for you.

Do mortgage brokers charge fees in Australia?

Most mortgage brokers do not charge fees — they are paid by the lender at settlement. Some brokers charge fees for very small or complex loans. Any fee must be disclosed upfront. Lendology's service is always free to the borrower.

How many lenders does a mortgage broker have access to?

It varies. Lendology has 60+ lenders on its panel including major banks, credit unions, mutual banks, non-bank lenders and specialist lenders. The broader the panel, the more options the broker can compare for your situation.

Can a mortgage broker get me a better rate than I could get myself?

Often yes. Brokers have access to lender pricing that is not always publicly advertised. They also know which lenders are most competitive for your specific profile — and can negotiate on your behalf with evidence of competing offers.

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